The Federal reserve will love this...greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
This is from Westergaard's site. An article by Chuck Lanza Called Global-Local y2k. Here are some comments from the article though the entire article should be read.
We talked about money, not what I would be paid, but rather, how finances could be impacted by Y2K disruptions. The audience agreed that as with food, many people are assuming nothing will happen or will wait until the last minute to obtain cash. If credit card systems fail, many people will need to have enough cash to buy food and other necessities. Stockpiling food and water, prior to the event was the strategy chosen to lessen the community's vulnerability to these disruptions.
It was agreed that many of us have become dependent on automatic teller machines for our cash. These machines could be vulnerable as they require power and communications with the bank over phone lines or radio frequencies, each of which could be disrupted. In addition, ATMs require a bank computer to approve the transaction. They saw the interrelationship and the dependence of many systems on computers. Needless to say, access to ready cash may not be easy.
A strategy that was suggested included putting away cash soon. I suggested that everyone should maintain at least one month's supply of cash for all of their purchases including those that are made by check and credit card. This could amount to thousands of dollars. The suggestion included identifying what people spend in a month and that would become their cash reserve goal. Since we are rapidly approaching the millennium I suggested everyone start today to put away small sums until they reach that amount.
-- Mike Lang (firstname.lastname@example.org), February 19, 1999
Hi Mike. I've got a few $ now and plan on having many more by 1/1. Here's my question. If the bank run does start, it is a shortage of cash problem. The Gov may limit the amount of cash you can get, ie. "freeze" your account. But what about your checks? Since a ckeck is electronic money, not hard cash, will your checks be honored? This assumes the bank can process your check. Is my landloard going to be looking for cash on Jan. 1? Get my point??? <:)=
-- Sysman (email@example.com), February 20, 1999.
Sory (oops) about the typoees as Jenyn (oops) would say...
-- Syaman (firstname.lastname@example.org), February 20, 1999.
Your check should be good until the rollover. Then who knows?
-- LM (email@example.com), February 20, 1999.
I'm only depositing into my checking account money to cover my mortgage payment and I keep the rest in cash. No more checkbook to reconcile, no more ATMs to keep track of, no paper trails, cash transactions gives you lots of freedom. If there's a run on the banks, which I believe there will be, I don't want to be one of the thousands that will be waiting in line just to get $20.00. Just think about all the angry people you'll have to deal with...no thanks.
-- bardou (firstname.lastname@example.org), February 20, 1999.
FWIW, one notion that appeals to me is to pay some bills in advance before year end 1999, and to do so in time for the cancelled checks to be back from the bank in the November or December statement. Things like rent or mortgage or property tax, and perhaps gas & electric, and phone, a few months in advance, if you can handle it.
If runs on the banks do occur, they will cause a serious problem, but not as serious (at least during 1999) as it would have been if payments by credit card and check were not as common as they are. As for next year, stay tuned.
Anyone planning to leave funds in banks might consider having accounts in more than one bank.
-- Jerry B (email@example.com), February 20, 1999.